A Bank Reconciliation Explains the Differences Between

question 77

Multiple Choice

A bank reconciliation explains the differences between:

• A)Cash receipts and cash disbursements for the period.
• B)The balance of cash in the bank and the budgeted expenditures for the upcoming accounting period.
• C)The balance per bank statement and the cash balance per the accounting records of the depositor.
• D)The balance per bank statement and cash expected to be on hand according to the cash forecast.

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Definitions:

Certificates of Deposit

Time deposit financial products provided by banks that offer a fixed interest rate in exchange for keeping a deposit untouched for a predetermined period.

Petty Cash

A small amount of cash on hand used for covering minor expenses, managed through a petty cash fund.

Money Orders

A financial instrument, purchased for a specific amount of money, that is used for making payments from one party to another.

Internal Control System

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.